Saving Money on a New House in TV
 

I think I see a pattern in prices folks pay for new TV homes. My theory is that those who decide to buy a home with numerous upgrades pay more than they would if they were to buy the upgrades later from private contractors.

A prime example can be found in the current thread "Swimming Pools", where folks report that they save lots of money contracting with a really good company like T&D to build exactly what they want after they move in, rather than buying the pool, (also built by T&D) from TV during home construction. I'll extend those savings possibilities to golf cart garages, birdcages, summer kitchens, landscaping, quality hardwood and tile flooring, etc., etc. I don't think you can save that much in the smaller upgrades like appliances, fixtures and cabinets, but I too saved thousands on some big items.

What it took was a fair amount of research, lots of TOTV reading which helped me find the best contractors, and patience. But what the heck, I'm retired.

I'm curious if others have had similar experiences. If so, we could have a whole new chapter of 'Nuts & Bolts' for newbies... How to Beat the System.

hmmm , verwi interesting !!!

I personally think that the best way to "beat the system" is to buy a resale. Most resales have a ton of extras, and you can buy one with a pool, spa, summer kitchen, etc.

when to buy new home
 

Good thoughts about the pared down home and upgrades later....here is another question...when is it the cheapest to buy? I have friends who got a good deal buying in the summer since the crowds were less and I have a friend who got some extra incentives buying at the end of the year. Any toughts on this?

I agree with Barefoot 100% on buying a resale. We got a lot of upgrades not even offered in new homes. And our bond is 1/10 the size of bond in a new home.

ssmith....we got a 4% incentive to start building because they were anxious to close out in buttonwood and move onto tamarind grove....good luck!!!

ijusluvit, I agree with you.

Most resales where people have upgraded, they price it accordingly,
and most of the time, I don't really like their taste! Not that it's bad, but it's not me. A new home, like a blank canvas, works best for me.

That said, if and when we move again, we'll look at resales too.
Whatever fits best at the time, there can be some good resales too.

Dear friends of ours bought a new home 5 years ago without upgrades. Five years later, they still have not completed all their upgrades because the costs are more than they want to spend. If you are not going to do the upgrades through the Villages, be sure you have put the money aside to still do it. Otherwise, it may not get done, and quite frankly, I would be a very unhappy wife.

Actually, to be competitive, most resales include upgrades for a fraction of the price that it would cost to install them. The owners that expect to price their houses and recoup the price of upgrades, are the owners that complain about their houses not selling!

For instance, we purchased a Courtyard Villa and added a huge birdcage, glassed in the lanai, landscaped it with rock and palms, and renovated the kitchen. And we sold the CYV for less than our purchase price.

Well, I do not think that idea is correct about a resale costing more than a new home with the same upgrades.

I know for a fact that my home - on a golf course - would have cost around $50,000 more if I had bought a new house. Plus I would have had a bond of over $25,000. I got my house with a $2,300 bond - meaning much less on my property tax bill every year.

However, each to their own way of thinking. That is why Baskin-Robbins has so many flavors of ice cream.

It's unfortunate that losing money on upgrades when selling in TV has been common during the downturn. But I think that's changing.

The point is there are still many people who are strongly drawn to a new house. Often it is a highly emotional decision, made in just a few days. The Villages realtors make it as enticing as they can and some people can't resist the "all new" urge.

But people still have choices, they can buy a lot and build, with time to make decisions. And unlike the almost infinite patience it requires to do that almost anywhere else in the country, it's still a speedy process here. Building without big upgrades is more feasible for many TV'rs because they tend to have a large enough nest egg to take out a smaller mortgage or none at all. Taking a little bigger mortgage at current attractive rates and holding onto some cash for upgrades just seems to make good sense.

I go back to the swimming pool example. It is a fact that new owners pay thousands more for a pool and birdcage built with their house than if they hired the same company (T&D), the day after they close on the house. And as a bonus, the owner gets to select options in much more relaxed fashion, supervise the process, and make changes if they realize there were things they didn't consider at the start. (Gee honey, I didn't know it would look like this!)

Good points Jusluvit. There is something enticing about new homes! And the Village Reps promote them. I certainly understand that a lot of people would prefer "unspoiled" to a resale, regardless of savings.

It is also a good point about selecting options for pools, etc., after the fact in a relaxed fashion. It also gives homeowners the ability to see what other neighbours and friends have done, and perhaps come up with additional ideas for the "perfect" choice.

I prefer resale. Best value, best selection, and lowest cost when compared correctly. So many people look at a resale and compare it model for model to new. However you must adjust for the value of the bond plus everything else that you would do anyway. Don't pay for something you don't want, but adjust for those things you know you will do. Most resales have upgraded landscaping. Every new home will need that done. Most have attic stairs and floored area for storage. New homes don't. Most resales have blinds or curtains. If you like them, great, if not don't assign any value to them.

Also you need a little more vision to buy a resale. Being able to see how doing the things you want can change it for you. I have seen many homes just not sell because they may have two orange and three purple rooms. But that is such a minor problem to fix. But you have to be able to see past that and know what cost to allow to fix it.

Resales can be a great value if you can do those things.

I think the point of this thread is that it is cheaper to buy a new house from the Villages without the upgrades and then add the upgrades after closing with your selected installers. This may be true as The Villages does add their profit and overhead to the subs and their products. However, it is then a finished product and some folks, irrespective of price, rather would have a finished product then to go through all the headaches of additional contractors ripping up your house and yard...and don't forget noise, dust and neighbor issues. And the "gee i was delayed but will be there next week story" and the "job" that was to take one week ends up as a 2 month job... 10 years ago many of the after market contractors were suspect....many are not here. Many are now much better but still can have issues. When The Villages builds your house, they stand behind all their work...a problempops up, they fix it. That is their warranty.

I agree with ijustluvit that it is less costly to upgrade after the sale and that it is more advantageous in all the ways she mentioned-- more choice in final product, ability to select contractor and negotiate contract, ability to supervise and make adjustments.

I also agree with Bare and I2ride that, when compared correctly, resales are a much better value. We looked at scores of houses before buying in TV; and in apples to apples comparisons (including bond difference and valuing only the upgrades you want) the only resales that were not a far better value than a comparable new were the ones that were overpriced.

In an area that still has new homes for sale, it almost seems inherently true that resales are a better deal. If, in an apples-to-apples comparison, you could get a new one cheaper, why would anybody buy a resale. And if nobody would buy a resale, our homes would have no market value at all. Afterall, you can buy a new home, but you can never sell one. Oh dear, I hope that made sense? :shocked: